Hoon risks row with plan to reform EU

The government is to risk aggravating Britain's Eurosceptic sore by setting out plans for the European Union which are certain to weaken the UK's right of veto. Ministers want to streamline decision making while rejecting plans to revive the EU constitution which was thrown out by the French and Dutch last year.

Geoff Hoon, the Europe minister, told businessmen in London yesterday that the EU's current rules were unsustainable. He added: "To do nothing on improving the EU's decision-making could jeopardise the liberalisation of our markets, the benefits to consumers, tackling climate change and the enlargement process."

He argued that on the basis of his discussions in European capitals "there is a consensus on the need for change among all member states".

The proposals are bound to weaken the power of the UK veto.

A government statement would be published shortly, Mr Hoon added.

The statement is likely to reflect ideas put forward by the French interior minister, Nicolas Sarkozy, for a mini-treaty to streamline European institutions and as the EU grows to 27 countries.

The push for reform is due to go to the top of the agenda after the French presidential elections in May.

Fifteen countries have ratified the constitution so far, and the Germans, running the presidency from January, would like to see the constitution revived after the French elections. However, many see this timetable as ambitious.

The Germans want the French to hold a second referendum on the treaty, but Mr Sarkozy, seen as the frontrunner for the French presidency, has said the 27-member bloc should adopt a mini-treaty to streamline institutions.

He pointed out that the views of the 15 countries that had ratified the constitution were as valid as those that had rejected the treaty, such as France and the Netherlands. On the veto, Mr Sarkozy pushed for a majority voting rule which would require 70-80% of votes for a decision to be approved.

Mr Hoon's remarks contrasted with those of the foreign secretary, Margaret Beckett, who said a fortnight ago that the EU had a tendency to produce grandiose schemes.

Mr Hoon and Mrs Beckett had a falling out this week when Mrs Beckett insisted she answered questions in the Commons on Europe.

The row partly reflects status and personality clashes, but also over Mr Hoon's more pro-European stance.

Tony Blair is likely to touch on the issue when he meets the German chancellor, Angela Merkel, in London today. There is no appetite among ministers to hold a referendum on the treaty.

But ministers believe an opportunity has risen to rebrand the EU as the best protector of the environment, energy, security, and a way of spreading democracy.